
AI’s Impact on the Legal Profession: Evaluating Risks and Assessing the Future of Legal Practice
A. Introduction:
Artificial Intelligence (AI) has revolutionized various industries, and the legal profession is no exception. AI technologies are increasingly being adopted in legal practices to streamline processes, enhance efficiency, and provide new insights. However, along with the benefits, AI also brings certain risks. In this article, we will explore the impact of AI on the legal profession, assess the associated risks, and examine the future of AI in the legal practice profession.
B. AI’s Impact on the Legal Profession:
- Automation of Routine Tasks: AI-powered tools and algorithms can automate repetitive tasks, such as document review, due diligence, and contract analysis. This automation frees up valuable time for legal professionals to focus on more complex and strategic work, improving overall productivity and efficiency.
- Enhanced Legal Research: AI-powered algorithms can quickly analyze vast amounts of legal information, including case law, statutes, and legal precedents. This enables lawyers to conduct comprehensive legal research more efficiently, saving time and providing valuable insights for case preparation and strategy.
- Contract Analysis and Due Diligence: AI-based contract analysis tools can review and extract key information from contracts, reducing manual effort and human error. Similarly, AI can assist in due diligence processes by quickly analyzing large volumes of data, identifying potential risks, and highlighting critical information.
- Predictive Analytics: AI algorithms can analyze historical data and patterns to provide predictive analytics for legal outcomes, such as case verdicts or settlement amounts. This can help lawyers and clients make informed decisions and assess the potential risks and rewards associated with legal actions.
C. Risks Associated with AI in the Legal Profession:
- Data Privacy and Security: The use of AI involves the collection and analysis of vast amounts of data, including sensitive client information. Safeguarding data privacy and ensuring robust cybersecurity measures are crucial to prevent unauthorized access, breaches, or misuse of confidential data.
- Bias and Fairness: AI algorithms learn from historical data, which may contain biases or reflect societal inequalities. If not carefully monitored and audited, AI systems can perpetuate biases in legal decision-making, potentially leading to unfair outcomes. It is crucial to ensure transparency, accountability, and regular audits of AI systems to mitigate these risks.
- Ethical Considerations: The use of AI raises ethical concerns, particularly when it comes to issues such as AI-generated legal advice, responsibility for errors in AI outputs, and the ethical implications of delegating decision-making to machines. Legal professionals must navigate these ethical considerations and ensure that AI systems align with professional ethical standards.
D. The Future of AI in the Legal Practice Profession:
- Augmented Intelligence: The future of AI in the legal profession lies in augmented intelligence, where AI technologies complement human expertise rather than replace it. Lawyers will leverage AI tools to enhance their capabilities, improve efficiency, and provide more value-added services to clients.
- Legal Innovation and Efficiency: AI has the potential to drive legal innovation by automating routine tasks, improving legal research capabilities, and providing data-driven insights. This can result in increased efficiency, cost savings, and the ability to deliver legal services more effectively.
- Enhanced Client Experience: AI-powered chatbots and virtual assistants can improve client interactions by providing instant responses, personalized recommendations, and self-service options. This can enhance the overall client experience and improve client satisfaction levels.
E. Conclusion:
AI technology has the potential to significantly impact the legal profession by automating tasks, improving research capabilities, and providing predictive analytics. While the benefits of AI in the legal practice are substantial, it is crucial to address the associated risks such as data privacy, bias, and ethical considerations. By navigating these risks and embracing AI as a tool for augmented intelligence, the future of the legal profession holds promise for increased efficiency, innovation, and enhanced client experiences.
Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.

Cryptocurrencies: Evaluating Risks and Assessing Their Future in Digital Banking
A. Introduction:
The emergence of cryptocurrencies has disrupted traditional financial systems, offering decentralized and secure alternatives to conventional banking. However, as with any financial innovation, cryptocurrencies come with inherent risks. In this article, we will delve into the risks associated with cryptocurrencies and explore their potential future in the realm of digital banking.
B. Cryptocurrency Risks:
- Price Volatility: One of the primary risks associated with cryptocurrencies is their extreme price volatility. The value of cryptocurrencies can experience significant fluctuations within short periods. Investors must be prepared for the possibility of substantial gains or losses in their cryptocurrency holdings.
- Regulatory Uncertainty: Cryptocurrencies operate in a regulatory landscape that is still evolving. The lack of standardized regulations across jurisdictions introduces uncertainties regarding their legal status, taxation, and consumer protection. Regulatory changes can impact the viability, adoption, and usage of cryptocurrencies, leading to potential risks for investors and digital banking institutions.
- Cybersecurity Vulnerabilities: Cryptocurrencies face cybersecurity threats due to their digital nature. Hacking attempts, phishing attacks, and theft pose significant risks to individuals and digital banking platforms that deal with cryptocurrencies. Robust security measures, such as secure wallets and strong authentication protocols, are essential to safeguard against these risks.
- Market Liquidity: Cryptocurrency markets may experience liquidity challenges, particularly for less-established or low-volume cryptocurrencies. Limited liquidity can impact the ability to buy or sell cryptocurrencies at desired prices, leading to potential trading difficulties and increased transaction costs.
- Technological Risks: Cryptocurrencies rely on underlying technologies, such as blockchain, which are still evolving. Technical vulnerabilities, software bugs, and network disruptions can pose risks to the stability and reliability of cryptocurrencies. Ongoing technological advancements and upgrades are necessary to mitigate such risks.
C. The Future of Cryptocurrencies in Digital Banking:
Despite the risks, cryptocurrencies have the potential to shape the future of digital banking in several ways:
- Increased Financial Inclusion: Cryptocurrencies can provide access to financial services for the unbanked and underbanked populations, enabling secure and efficient cross-border transactions without the need for traditional banking intermediaries.
- Streamlined Cross-Border Payments: Cryptocurrencies can facilitate faster and cheaper cross-border transactions, eliminating intermediaries and reducing transaction fees. Digital banking institutions can leverage cryptocurrencies to offer efficient global payment solutions to their customers.
- Decentralized Finance (DeFi): Cryptocurrencies underpin the growth of decentralized finance, enabling various financial services, including lending, borrowing, and yield farming, without traditional intermediaries. DeFi platforms can integrate cryptocurrencies to provide innovative financial products to users.
- Central Bank Digital Currencies (CBDCs): Several central banks worldwide are exploring the development of CBDCs, which are digital currencies issued and regulated by central authorities. CBDCs can potentially enhance the efficiency and transparency of digital banking systems, bridging the gap between traditional currencies and cryptocurrencies.
D. Conclusion:
Cryptocurrencies have emerged as a disruptive force in the financial industry, offering unique advantages and challenges. Understanding the risks associated with cryptocurrencies is crucial for individuals and digital banking institutions venturing into this domain. While risks such as price volatility and regulatory uncertainties persist, cryptocurrencies hold the potential to transform digital banking by enabling financial inclusion, streamlining cross-border payments, fostering decentralized finance, and paving the way for central bank digital currencies.
As the digital banking landscape continues to evolve, carefully navigating the risks and leveraging the opportunities presented by cryptocurrencies will be pivotal for the future of the industry.
Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. It is important to conduct thorough research and consult with financial professionals before making any investment decisions related to cryptocurrencies or digital banking. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.

Financial Action Task Force Statement Publications – February 2023
Paris, 24 February 2023 – The second Plenary of the FATF under the Presidency of T. Raja Kumar of Singapore concluded on 24/2/2023. Delegates from over 200 jurisdictions of the Global Network participated in these discussions at the FATF headquarters in Paris.
Following the statements issued since March 2022, the FATF reiterates that all jurisdictions should be vigilant to current and emerging risks from the circumvention of measures taken against the Russian Federation in order to protect the international financial system. The outcomes of the FATF Plenary, 22-23 February 2023 relate among others to the following matters:
FATF Statement on High-Risk Jurisdictions subject to a Call for Action:
Following FAFT’s statement of October 2022 on the list of “High-Risk Jurisdictions subject to a Call for Action- October 2022”, the latter proceeded with the issuance of a Publication on the 24th of February 2023, through which it urges all jurisdictions to apply enhanced due diligence, and, in the most serious cases, countries are called upon to apply counter-measures to protect the international financial systems from the money laundering, terrorist financing, and proliferation financing (the “ML/TF/PF”) risks emanating from the country. In particular, the FATF’s call for action on the following high-risk jurisdictions remains in effect:
A. Jurisdictions subject to a FATF call on its members and other jurisdictions to apply countermeasures.
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- Democratic People’s Republic of Korea (DPRK)
- Iran
B. Jurisdiction subject to a FATF call on its members and other jurisdictions to apply enhanced due diligence measures proportionate to the risks arising from the jurisdiction.
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- Myanmar
FATF Statement on Jurisdictions under Increased Monitoring:
On the 24th of February 2023, the FAFT issued a Publication in relation to the results of the progress review to identify new countries with strategic AML/CFT deficiencies, despite the challenged posed by Covid-19, based on which:
A. Jurisdictions no longer subject to increased monitoring:
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- Cambodia
- Morocco
B. Jurisdictions with strategic deficiencies:
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- Albania
- Barbados
- Burkina Faso
- The Cayman Islands
- (*) Democratic Republic of the Congo
- Gibraltar
- Haiti
- Jamaica
- Jordan
- Mali
- (*) Mozambique
- Nigeria (new)
- Panama
- Philippines
- Senegal
- South Africa (new)
- South Sudan
- Syria
- (*) Tanzania
- Turkey
- Uganda
- United Arab Emirates
- Yemen
* Chose to defer reporting; thus, the relevant Statements available, issued in October 2022 may not necessarily reflect the most recent status of the jurisdictions’ AML/CFT regimes.
FATF Statement on the Russian Federation:
On the 24th of February 2023, the FAFT issued a Statement in relation to its decision to suspend the membership of the Russian Federation, as the latter’s continuing and intensifying war of aggression against Ukraine runs counter to FATF’s core principles aiming to promote security, safety and the integrity of the global financial system. In particular, Russian Federation can no longer hold any leadership or advisory roles or take part in decision-making on standard-setting, FATF peer review processes, governance, and membership matters.
Other matters:
- Mutual Evaluation Reports: FATF has adopted a mutual evaluation report of Indonesia and Qatar that will be published by May 2023 following the completion of its quality and consistency review.
- Beneficial Ownership of Legal Persons: FATF Plenary has finalised a guidance document which will help countries implement the revised requirements of Recommendation 24 which requires countries to ensure that beneficial ownership information is held by a public authority or body functioning as a beneficial ownership registry or an alternative mechanism they will use to enable efficient access. The guidance will be published in March 2023.
- Beneficial Ownership of Legal Arrangements: FATF Plenary also agreed on enhancements to Recommendation 25 on legal arrangements to bring its requirements broadly in line with those for Recommendation 24 on legal persons to ensure a balanced and coherent set of FATF standards on beneficial ownership.
- Disrupting the financial flows from ransomware: FATF completed research that analyses the methods that criminals use to carry out their ransomware attacks and how they launder ransom payments. Relevant research will be published in March 2023 and will include a list of risk indicators that can help public and private sector entities identify suspicious activities related to ransomware.
- Improving implementation of FATF requirements for virtual assets and virtual asset service providers: Plenary agreed on a roadmap to strengthen the implementation of FATF Standards on virtual assets and virtual asset service providers, which will include a stocktake of current levels of implementation across the global network. In the first half of 2024, the FATF will report on steps FATF members and FSRB countries with materially important virtual asset activity have taken to regulate and supervise virtual asset service providers.
- Money Laundering and Terrorist Financing in the Art and Antiquities Markets: FATF has also finalised a report that explores the link between money laundering and art and antiquities which was published on the 27th of February 2023.
In case you have any questions, please do not hesitate to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.

Procedures for the receipt of reports of infringement of Regulation (EU) No. 596/2014 on market abuse
We would like to draw your attention to the Circular C488 (the “Circular”) issued by the Cyprus Securities and Exchange Commission (the “CySEC” of the “Commission”) on the 17th of February 2021, under the provisions of Article 2(1) of the Regulation (EU) No 596/2014 as amended (the “Market Abuse Regulation”), in relation to the updated procedures in force regarding the receipt of reports of infringement pursuant to the provisions of Article 32 of the Market Abuse Regulation.
In brief, please note the following:
A. Reporting Requirements:
- The staff members of the Market Surveillance and Investigations Department of CySEC dedicated to the handling of the reports of infringements (the “Competent Department”) have been assigned with specific duties in order to assist and provide information on the procedures for reporting infringements to any interested person.
- The report of infringement can be submitted either by name or anonymously, through the communication channels of the Competent Department as further specified under point A3 of the Circular.
- A person who is accused of having committed an actual or potential infringement of the Market Abuse Regulation (the “Reporting Person”), may proceed with the submission of a written report of infringement by completing the “Whistleblowing External Disclosure Form” (the “Form”) which is available as an Appendix within the Circular.
- In cases when the identity of the Reporting Person has been disclosed, CySEC may request further information.
- Upon the submission of the infringement report, either orally or written, CySEC notifies the Reporting Person in writing within how many days will be notified about the results of his/her inquiry and ensures that the relevant notification will be sent within the timeframe set.
B. Record Keeping of the Infringement Reports:
- Unless otherwise requested by the Reporting Person, a receipt of a confirmation is sent by CySEC.
- In cases where reporting of infringements has been performed through the use of a telephone line, CySEC has the right to document the oral reporting, except the cases where Reporting Person’s prion consent is not provided.
- In cases where Reporting Person’s consent is not provided for the reporting of infringements, CySEC has the right to document the conversation in the form of accurate minutes.
- In cases where a person requests a physical meeting with the Competent Department for the purposes of reporting the infringement, CySEC ensures that complete and accurate records of the meeting are kept in a durable and retrievable form.
- In cases where the confidentiality regime is used, CySEC notes that under certain circumstances as those explained in point C of the Circular, confidential information of the Reporting Person may be published.
To this end and as per Article 6(6) of the Market Abuse Law of 2016, a person providing information to CySEC, in accordance with the Market Abuse Regulation, is not considered to be infringing any restriction on disclosure of information imposed by contract or by any legislative, regulatory or administrative provision, nor will the said person have the liability of any kind related to such disclosure.
In case you have any questions, please do not hesitate to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.

Andria Papageorgiou Law Firm awarded by The Lawyers Global Awards 2021
It is with great pleasure to announce that Andria Papageorgiou Law Firm has been awarded as an Outstanding Law Firm, within the regions of Europe, Eastern Europe, and Cyprus, by The Lawyers Global (TLG), which is the ultimate exclusive directory for Elite Law Firms and Lawyers.
The award was received by the firm’s Founder, Mrs. Andria Papageorgiou.
Law firms have overcome the numerous challenges imposed by an atypical and unprecedented global crisis. Some of the challenges resulted, in many cases, in the capability of law firms to adjust, innovate, and find the paths for successful outcomes. Congratulations to all the Awarded law firms that proved to deserve their recognition and become listed at The Lawyers Global as The Law Firms’ Elite.
We are elated with this major achievement of our Law Firm as this recognizes the hard work and commitment during our very fresh beginning as a newborn Law Firm, with a legacy of a long experience in both legal and financial services sectors.
Our aim is to remain dedicated to bringing the highest value of service to our clients in any sector or industry they operate in, ready to provide bespoke advice and legal services tailored to the client.
Thank you to all friends, associates, and clients for their continuous and valuable support.
In case you have any questions, please do not hesitate to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.
Signed-Awards-Certificate-2021-A4

Registration of the Ultimate Beneficial Owner(s) (“UBOs”) to the Registrar of Companies
The Department of the Registrar of Companies and Official Receiver, has been appointed as the Competent Authority for the operation of the Registration of the UBOs of Companies and Other Legal Entities, based on the Prevention and Suppression of Money Laundering Activities and Financing Terrorism Law and similar Directives.
Hence, all registered/incorporate legal entities, have the obligation to submit electronically, the information of their UBOs under the Beneficial Owners Register operated in the Department of the Registrar of Companies and Official Receiver.
The Partnerships who are registered in the Company’s Registrar have also been included in the list of the entities with the above respective obligation.
UBO can be considered as the physical person who owns/control a legal Entity or the physical person to whom an activity or transaction is operated by a third party.
- Direct ownership means a physical person who holds the 25% of shares plus 1 share or shares over 25%
- Indirect ownership means a legal entity/ies who hold on behalf of the physical person/s the 25% of shares plus 1 share or shares over 25%
Based on the above, the Companies and Other Legal Entities (Partnership) incorporated before 12/03/2021, are obligated to submit in Registrar of Companies the information required for the real beneficial owners the latest by 12/03/2022.
The submission must be done electronically by the Company or any other Legal Entity (Partnership) via the Government Gateway Portal (Ariadni), that operates since 16.03.2021 without any fees.
The steps for the electronic submission, that need to be taken, are as follows:
- Each Company or Partnership must create a profile as an Organization in the Government Gateway Portal (Ariadni) https://eservices.cyprus.gov.cy.
- The Identification of the Entity’s / Partnership profile must be done by the physical presence of the Entity’s/Partnership representative at the following authorized centres:
- Unified Service Center (CSR) – 13-15 Andrea Araouzou, 1421 Nicosia
- District Post Offices (KEPO)
- Nicosia – 100 Prodromou, 2063
- Limassol – 16 June 1943 (former Gladstonos) 3022 Paphos –
- Aristotelis Savva 23, 8025
- Larnaca – Vassileos Pavlou Square, 6023
- Citizens’ Service Centers (KEP)
- Nicosia – Georgiou Seferis, 2415 Engomi
- Limassol – Spyrou Araouzou 21, 3036
- Famagusta – Eleftherias 83, 5380 Deryneia
The following companies have an exception from the UBOs registration:
- Companies that are licensed under a Regulated Market and are subject to notification requirements based on the European Union Legislation.
- Companies which are, subject to equivalent international standards that ensure the ownership transparency.
- Companies which submitted to the Registrar of Companies, the application for the deletion of their officers based on the article 327(2A)(a) of the Companies Law before 12/03/2021 or the companies that were without any officers before 12/03/2021.
- Companies to which the liquidation procedure has started before 12/03/2021.
More details in relation to the submission of the Beneficial owner’s information in the Register and its operation can be found at the following links:
- Regulatory Administrative Act No 112/2021
- At the manual for the Interim Solution of the Register of Real Beneficiaries: CLICK HERE
- To the answers on frequently asked questions in relation to the Real Beneficiaries: CLICK HERE
- Το the announcements of the Registrar of Companies.
Based on the above the Ministry of Energy, Commerce and Industry and the Department of the Registrar of Companies and Official Receiver, are inviting you to proceed as soon as possible and before the 12 March 2022, with the submission of the Real Beneficiaries information at the Real Information Register. Please note that no further extension will be given.
During the collection and submission of the Beneficial Owners’ information, no penalties will be imposed against the entities, until 12/03/2022. Any changes as to information of the UBOs should be submitted within 14 days since the day of the information/changes is acknowledged.
In case you have any questions, please do not hesitate to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.

Circular C475: Sanctions Imposed by the Office of Foreign Assets Control (“OFAC”) of the U.S. Treasury Department
With Circular C475 and on continuation to the Circulars C266 and C337, CySEC draws your attention to the continuously updated list of the latest U.S. sanctions (available here), which inter alia, contains Cyber related Designations and Designations Updates.
Sanctions imposed individually by third countries are not enforceable in the EU, but CySEC expects the Obliged Entities falling under their supervision to take such measures into account, in the context of their relevant risk assessment and take proportionate action, including refraining from engaging with affected persons.
This Circular serves as a reminder to Obliged Entities of their obligations and particularly to CASPs, of the content of CySEC’s Policy Statement on the Registration and Operations of CASPs (“PS-01-2021”, available here), according to which CASPs, are inter alia expected to have in place policies, procedures, systems and controls to ensure compliance with a risk based approach (Paragraph 2.2.2.4 of PS-01-2021 elaborates further on the subject matter).
In case you have any questions, please do not hesitate to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.

New Incentive Scheme To Be Launched To Attract High Tech Companies
Cyprus Government presented recently a new proposal for the attraction of businesses and digital nomads, placing an emphasis on domains related to High-tech, Research & Development and Shipping.
The establishment of this proposal has an attempt to make Cyprus an attractive investment destination in the wider region and Europe and is expected to come into force as from January 2022.
In general the suggested main pillars of the new proposal are as follows:
A. Employment of Non-EU Nationals:
Employment of Non-EU Nationals with a General Minimum salary of €2.500 for highly skilled employees, while a university degree or at least 2 years experience are required. The work permits will be issued within one month and will last up to 3 years. The maximum work permits for Non-EU Nationals per Company is 70% for a 5-year period. The Companies will need to be able to employ Non-EU Nationals as supporting staff with salaries below €2.500 (Maximum 30% of the total supporting staff of the entity).
B. Employment of family members:
Non-EU employee’s spouses, who are employed in a Company operating under the provisions of the Business Facilitation Unit (excluding the supporting staff category) will also have immediate and free access to Cyprus labour market.
C. Digital Nomad Visa:
A new type of permit the so-called Digital Nomad Visa will be introduced for those who wish to live in Cyprus but work remotely for companies operating abroad. This Digital Nomad Visa will have a maximum quota of 100 applications. The visa will be granted for the period of 1 year with the right to renew it for another 2 years. The Digital nomads’ minimum threshold of funds coming from abroad (salary, bank statements, etc.) is €3.500, plus an additional 20% for the spouse and 15% for any minor.
D. Naturalization of Non-EU Nationals employed in Cyprus:
According to the new proposal, non-EU Nationals who are employed in Cyprus, will be able to apply for citizenship after 5 years of residency instead of 7. For those who have a very good knowledge of the Greek language with a proof of certification, will be able to apply for citizenship after 4 years.
E. Simplification of the process for obtaining Permanent Residency:
The actual proposal provides a simple process for obtaining Immigration Permits and Long-Term residency permits. Relevant Regulations of the Aliens and Migration Law will be amended in order to speed up the process of the applications.
F. AP Law Firm:
Andria Papageorgiou Law Firm can assist with any of the above matters. Therefore, should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.

Benefits of doing business in Cyprus in 2021
A. Introduction
Cyprus has a modern, free-market, service-based economy giving international investors and domestic businesses confidence to invest, grow and prosper. The tertiary sector of services is considered the backbone of the Cyprus economy and with a high income per capita, the consumer market is particularly strong.
B. Reasons why Cyprus is one of the best options for your business
- Many Investment Opportunities
Cyprus offers many investment opportunities.It is one of the most touristic countries in the Mediterranean and Europe as a whole; it is one of the global shipping powers; it has a thriving real estate business, and its financial business still has a ton of room to grow.There are also other opportunities in gas, agricultural and fishing. - Entryway To Europe
Cyprus is a popular destination for businesses that are starting to operate in Europe. In a continent where there’s so much fiscal and bureaucratic pressure, Cyprus is a breeze of fresh air.Starting and running a business is simple. If you wish to start a financial business, financial licenses in Cyprus are reputable offering peace of mind for investors and have passporting rights.It means you can choose Cyprus as your European headquarters to operate your business without any additional licensing requirements for other EU members or needing to establish branches or offices. - Cyprus Is Business Friendly
The government took many business initiatives. For example, it introduced many tax incentives, opened the country to investors, established an attractive non-dom status for foreigners and provided tax credits for fund managers.It also created citizenship and residency by investment programs, and reformed banking laws so that banks could securitize loans, reducing their NPL exponentially. - Bilingual Population And Workforce
More than 70 % of the Cypriot population speaks English, and the island has a well-established expat community.More than half of the Cypriot residents hold tertiary qualifications as well. This means the island has an apt public sector and top-notch service providers of all kinds (accounting, legal services, tax planning, and more) that can help you start operating in Cyprus. - Quality Low Cost Of Living Environment
When compared to the services and easy life offered by the country, its cost of living is among the lowest in the European Union.The country has a modern infrastructure with great telecommunications. All this led to Cyprus being named the 5th best relocation destination in the world by a Knight Frank report, one of the world’s leading real estate consultants.This is why the country has the second-highest percentage of foreigners in the EU, with almost 20%.
C. Benefits of doing business in Cyprus
Our Clients looking to set up a business in Cyprus will enjoy a fast, stress-free and cost effective process because:
- A Cyprus Limited Liability Company can be 100% foreign owned and required only 1 shareholder and director of any nationality who can either be an individual or a corporate entity and must not be resident in Cyprus; It would be worth mentioning that all shareholders and director’s details of a Cyprus company are available for public viewing on the Cyprus Department of Registrar of Companies website; which may not be ideal for foreign investors seeking anonymity;
- The share capital of the company does not have to be fully paid in cash at the time of incorporation. You can pay it up later at any stage.
- Foreign owned companies are permitted to invest in every business sector in Cyprus without any restrictions or stringent licensing requirements except for a few regulated sectors such as banking and financial services and media;
- Using our Law Firm, our Client can obtain a Cyprus company registration number and tax number and commence the operations in Cyprus within a period of 2 weeks;
- Following business registration, our Law Firm can open a corporate bank account with one of the leading banks in Cyprus, including Bank of Cyprus and Hellenic Bank without our Client traveling to Cyprus;
- You can open a bank account for a Cyprus company in any country you want;
- Entrepreneurs registering business in Cyprus will enjoy considerably lower administrative and operational costs compared to most of other countries in the EU region.
Our Client doing business in Cyprus will benefit from various tax incentives including:
- The standard corporate tax rate in Cyprus is 12.5%, which is one of the lowest corporate tax rates in Europe, if generated within Cyprus, otherwise its corporate tax is 0%. Cyprus is a low tax jurisdiction not a Tax Haven.. Additionally, the government does not impose any capital gains tax; For a company to tax advantage of the multiple Cyprus’ tax treaties and the 12.5% corporate tax rate, a company is required to appoint at least one director who must be resident in Cyprus;
- A Cyprus holding company enjoys exemption from withholding taxes on dividends paid to a resident company whether they are received from a foreign company or another Cyprus resident company;
- Local companies will benefit from a wide network of double taxation treaties. The government of Cyprus had signed over 55 DTAs with at least 47 countries, including China, India, Ireland, Singapore, the United Kingdom and the United States;
- Companies will enjoy exemption from corporate income tax on income sourced from operations abroad as well as exemption from capital gains tax and estate duty on income from immovable property outside Cyprus.
Other advantages prompting foreign entrepreneurs and investor to consider doing business in Cyprus include:
- Up to 80% of income generated by Cypriot companies engaged in activities related to Intellectual Property (IP) is exempt from taxes; only 20% of the total profits is liable for taxes;
- Although seen as a safe haven for taxes, Cyprus is listed on the OECD ‘white list’ of global jurisdictions that are fully compliant with the international standards of tax;
- Tax resident companies can carry forward their tax losses incurred within a fiscal year for the subsequent 5 years and the same can be offset against the taxable income;;
- As a member of the European Union, Cyprus enjoys all the benefits of the EU regulations and treaties including, and particularly, the free movement of capital within and outside the EU region.
Cyprus laws are investor friendly due to the reasons given below:
- An opportunity to acquire Cyprus citizenship is offered to all the investors in Cyprus. A Cyprus citizenship has all the benefits that an EU citizenship has, i.e. the right to live, work, and move freely within the entire EU area; In October 2020, the Cypriot government abolished its golden visa program for wealthy investors. Therefore, the foreign investors cannot currently acquire citizenship by investment, but there are other options we could discuss and advise you further.
- Incorporation of a Cyprus company gives the right to the Real Owner and his family members to a long stay visa for two years (renewable) and work permit. In 7 years to a Cyprus, they can apply for a Cyprus citizenship and get an EU passport;
- A Cyprus company can be re-domiciled abroad to any other country;
- Cypriot laws allow the investor to retain their anonymity and hold their property under an international trust; 100% tax exemption on inward and outward dividends.
D. Conclusion
Cyprus is an ideal location for establishing a regional headquarters for a company with a global presence. Located int eh easter Mediterranean between Europe, Middle East and North Africa, Cyprus is an optimum jurisdiction to centralise and coordinate a company’s intercontinental operations;
Additionally, for Clients looking to establish abroad to minimise tax implications, Cyprus is a good choice of jurisdiction for legal tax optimisation;
Cyprus is an attractive place for new entrepreneurs aiming to engage in young and innovative businesses. These innovative start-up companies are provided with numerous tax benefits including a deduction of the qualified expenditure incurred from the investor’s taxable income of up to 50% of the taxable income or €150,000, whichever is lesser.
If you need to settle in Cyprus, you will enjoy a beautiful country with a mild climate, no crime rate, hospitable population, plenty of human recourses for your needs, a fantastic cuisine and tasty fruits and vegetables.
E. AP Law Firm
Andria Papageorgiou Law Firm can assist you with any matter relevant to the below:
- Corporate and Commercial;
- Employment;
- Immigration;
- Real Estate;
- Intellectual Property;
- Data Protection;
- Banking and Finance;
- Regulatory and Licensing Advisory
Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.

CySEC New Directive for the Registration of Crypto Providers
The Cyprus Securities and Exchange Commission (CySEC) issued on Friday a directive about the registration and operating conditions of providers of services related to cryptocurrencies. According to the guidelines, published only in the Greek language, CySEC provides certain procedures to follow in order to comply with the recent transposition of AMLD5 measures taken in the European Union (EU) to combat Anti-Money Laundering and Counter-Terrorist Financing.
The registration fee for the providers who want to apply before CySEC for authorization under the said directive would be EUR 10,000, and the renewal fee shall be EUR 50,000. In terms of the board’s composition, there should be a minimum of four members: two executives and two non-executives. Furthermore, among the conditions set out in the said directive, the companies should comply with some requirements such as good reputation, appropriate policies, systems and procedures, relevant security policies, and remuneration requirements, as specified by the CySEC.
In addition to the said directive, it is expected that the CySEC will issue a policy statement very soon clarifying other relevant matters. Additionally, there is a CySEC application file available with the updated regulatory requirements to follow the AMLD5 rulings.
It is well admitted by CySEC, who shares the position of the European Securities and Markets Authority (ESMA), that some crypto assets, including the so-called virtual currencies, such as Bitcoin, are highly risky and speculative, and investors must be alert to the high risks of buying and/or holding these instruments, including the possibility of losing all their money. Crypto assets come in many forms but the majority of them remain unregulated in the EU including Cyprus.
In light of all the above, it is quite evident that the incorporation of crypto-asset businesses under the scope of the EU AML legislation under the amended 5th AML Law in Cyprus is a very significant step.
Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.